Nova Corporation hired a new product manager and agreed to provide her a $27,000 relocation loan on a six-month, 6 percent note.
a. The company loans the money on January 1.
b. The new employee pays Nova the interest owed on the maturity date.
c. The new employee pays Nova the full principal owed on the maturity date.
Prepare journal entries to record the above transactions for Nova Corporation. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations.)
Answers: 3
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